An independent contractor is a person or business who performs services for another person pursuant to an agreement and who is not subject to the other's control, or right to control, the manner and means of performing the services. The exact nature of the independent contractor's relationship with the hiring party is important since an independent contractor pays his/her own Social Security, income taxes without payroll deduction, has no retirement or health plan rights, and often is not entitled to worker's compensation coverage.
There are a number of factors which to consider in making the decision whether people are employees or independent contractors. One of the most important considerations is the degree of control exercised by the company over the work of the workers. An employer has the right to control an employee. It is important to determine whether the company had the right to direct and control the workers not only as to the results desired, but also as to the details, manner and means by which the results were accomplished. If the company had the right to supervise and control such details of the work performed, and the manner and means by which the results were to be accomplished, an employer-employee relationship would be indicated. On the other hand, the absence of supervision and control by the company would support a finding that the workers were independent contractors and not employees.
Another factor to be considered is the connection and regularity of business between the independent contractor and the hiring party. Important factors to be considered are separate advertising, procurement of licensing, maintenance of a place of business, and supplying of tools and equipment by the independent contractor. If the service rendered is to be completed by a certain time, as opposed to an indefinite time period, a finding of an independent contractor status is more likely.
Restrictions to prevent competition by a present or former employee are held valid when they are reasonable and necessary to protect the interests of the employer. For example, a provision in an employment contract which prohibited an employee for two years from calling on any customer of the employer called on by the employee during the last six months of employment would generally be valid. Courts will closely examine covenants not to compete signed by individuals in order to make sure that they are not unreasonable as to time or geographical area.
Chicago Illinois Self-Employed Independent Contractor Agreement with Sales Representative (types: commission-based, non-exclusive, exclusive) The Chicago Illinois Self-Employed Independent Contractor Agreement with Sales Representative is a legally binding contract that outlines the terms and conditions between a company and a self-employed sales representative based in Chicago, Illinois. This agreement is designed to establish a relationship where the sales representative operates as an independent contractor rather than an employee of the company. A key aspect of this agreement is the recognition that the sales representative is operating their own business and has the freedom to work with multiple clients. By signing this agreement, both parties affirm their understanding that the sales representative will not be considered an employee of the company and will not be entitled to employee benefits, such as healthcare or paid time off. One type of self-employed independent contractor agreement is the commission-based agreement. In this agreement, the sales representative earns a commission based on the sales they generate for the company. The specifics of the commission structure, such as the percentage or flat rate, will be clearly defined within the agreement. Another type of agreement is the non-exclusive agreement. This means that the sales representative is not restricted from working with other companies and can represent competing products or services. This type of agreement offers flexibility to the sales representative but may also limit the level of support and resources provided by the company. On the other hand, an exclusive agreement restricts the sales representative from representing competing products or services. This type of agreement may provide the sales representative with more support and resources from the company but requires exclusivity to the company's products or services. In addition to addressing the employment relationship, the agreement will typically cover other important aspects, such as: 1. Scope of Work: Clearly defining the scope of the sales representative's responsibilities and the territory or market they will be covering. 2. Compensation: Outlining the payment terms, including commission rates, payment schedule, and any expenses or reimbursements the sales representative may be eligible for. 3. Term and Termination: Determining the duration of the agreement and the conditions under which either party can terminate the contract, such as through a notice period or for cause, such as non-performance or breach of contract. 4. Confidentiality and Non-Compete: Addressing the protection of confidential information and any restrictions on the sales representative's ability to work with competitors after the termination of the agreement. 5. Intellectual Property: Clarifying the ownership of intellectual property, such as trademarks or trade secrets, created or used during the course of the sales representative's work. 6. Indemnification: Determining the responsibilities and liabilities of each party regarding legal claims or damages arising from the sales representative's activities. It is essential for both the company and the sales representative to consult with legal professionals to ensure that the agreement is comprehensive, in compliance with local laws, and protects the interests of both parties involved.Chicago Illinois Self-Employed Independent Contractor Agreement with Sales Representative (types: commission-based, non-exclusive, exclusive) The Chicago Illinois Self-Employed Independent Contractor Agreement with Sales Representative is a legally binding contract that outlines the terms and conditions between a company and a self-employed sales representative based in Chicago, Illinois. This agreement is designed to establish a relationship where the sales representative operates as an independent contractor rather than an employee of the company. A key aspect of this agreement is the recognition that the sales representative is operating their own business and has the freedom to work with multiple clients. By signing this agreement, both parties affirm their understanding that the sales representative will not be considered an employee of the company and will not be entitled to employee benefits, such as healthcare or paid time off. One type of self-employed independent contractor agreement is the commission-based agreement. In this agreement, the sales representative earns a commission based on the sales they generate for the company. The specifics of the commission structure, such as the percentage or flat rate, will be clearly defined within the agreement. Another type of agreement is the non-exclusive agreement. This means that the sales representative is not restricted from working with other companies and can represent competing products or services. This type of agreement offers flexibility to the sales representative but may also limit the level of support and resources provided by the company. On the other hand, an exclusive agreement restricts the sales representative from representing competing products or services. This type of agreement may provide the sales representative with more support and resources from the company but requires exclusivity to the company's products or services. In addition to addressing the employment relationship, the agreement will typically cover other important aspects, such as: 1. Scope of Work: Clearly defining the scope of the sales representative's responsibilities and the territory or market they will be covering. 2. Compensation: Outlining the payment terms, including commission rates, payment schedule, and any expenses or reimbursements the sales representative may be eligible for. 3. Term and Termination: Determining the duration of the agreement and the conditions under which either party can terminate the contract, such as through a notice period or for cause, such as non-performance or breach of contract. 4. Confidentiality and Non-Compete: Addressing the protection of confidential information and any restrictions on the sales representative's ability to work with competitors after the termination of the agreement. 5. Intellectual Property: Clarifying the ownership of intellectual property, such as trademarks or trade secrets, created or used during the course of the sales representative's work. 6. Indemnification: Determining the responsibilities and liabilities of each party regarding legal claims or damages arising from the sales representative's activities. It is essential for both the company and the sales representative to consult with legal professionals to ensure that the agreement is comprehensive, in compliance with local laws, and protects the interests of both parties involved.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
